Viewpoint: Bullish
The ASX200 demonstrated its resilience yesterday after managing to eke out a small gain even after the Dow fell over 400-points, we believe the local market will continue to outperform the US over the coming weeks / months. The market peaked at 7399 into the close helped a recovery by the US futures during our day session but by midday the ASX had already confirmed the notable absence of any selling…
RMD -4.22%: At a conference overnight, the CEO of RMD Rob Douglas has painted a fairly challenging picture around supply chains, more or less reiterating what F&P Healthcare (FPH) said yesterday. He said rising freight costs and semiconductor chip shortages are curbing its ability to meet surging global demand for its devices. Rob went onto say that RMD was seeing almost “unlimited demand” for its products as a major…
NetEase Inc is a China-based technology company. The Company operates through four business segments. The Online Game Service segment is engaged in developing and operating online game services that cover mobile games and personal computer (PC) games. The games include Westward Journey, Onmyoji series and others. The Youdao segment provides intelligent learning services. Its products and services include Online Courses, Youdao Dictionary, Youdao Dictionary Pen, Youdao Listening Treasure, Youdao Smart Learning Lamp, Youdao Translator King, Youdao Super Dictionary and others. The Cloud Music segment provides online music services and social entertainment services. Products offered by the Innovation and Others segment include Yanxuan, NetEase Live, advertising services, high-end email and other value-added services. The Company mainly operates its businesses in the domestic and overseas markets.
Taiwan Semiconductor Manufacturing Co Ltd is a Taiwan-based company mainly engaged in the provision of integrated circuit manufacturing services. The integrated circuit manufacturing services include process technology, special process technology, design ecosystem support, mask technology, 3DFabricTM advanced packaging and silicon stacking technology services. The Company has completed the transfer and mass production of 5nm technology, and is engaged in the research and development of 3nm process technology and 2nm process technology. The product application range covers the entire electronic application industry, including personal computers and peripheral products, information application products, wired and wireless communication system products, servers and data centers.
US stocks took a rest overnight after rallying strongly for 6 sessions, the markets a bit stretched on the upside and a period of consolidation is logical especially after the index has quickly recovered over 50% of its 2022 losses i.e. some investors will be thinking “that’s enough I’m out”.
Earlier in the week we saw Boral (BLD) hit a 1-year low following a weak guidance update with heavy rainfall in QLD and NSW, plus escalating fuel prices, weighing on the business’s performance. Following the news, our attention instantly switched to sector peer CSR but the stocks continued to grind higher and we can see a further 10% upside over the coming weeks/months.
CXL +15.66%: their LEILAC-2 project has now achieved Financial Investment Decision (FID) and will now progress to the build. The move will see Calix’s technology capture 20% of the HeidelbergCement plant’s CO2 emissions in Hannover. The technology helps reduce carbon emissions in one of the biggest emitting industries globally, and just one string on the bow of Calix’s offering.
We discussed the Nasdaq ETF last week however failed to pull the trigger. We continue to think the ASX traded NDQ looks poised for a solid bounce but as its not leveraged we are only looking to grab a quick 10-15% profit assuming we are correct of course!
It’s our highest conviction call in the portfolio at the moment with an 8% weighting. Aussie Broadband has been busy, wrapping up the takeover of peer Over The Wire (OTW) recently. The deal was a key reason for our level of conviction with solid metrics around synergies and cross-sell opportunities – shares have been strong despite likely seeing natural selling from old OTW shareholders. Looking forward though, ABB will need…
I would imagine a number of subscribers have noted VUK’s ability to fall on worries around Eastern Europe and in tandem with the regions bourses but its failure to embrace their recovery, very annoying! At this stage VUK is proving a frustrating holding but we see no reason to sell the position, patience grasshopper!
